... for an 8.40/contract debit. Metrics: Max Loss: $840/contract Max Profit: $260/contract Debit Paid/Spread Width Ratio: 76.4% Break Even: 23.40 vs. 23.30 spot Notes: A neutral to bullish assumption, IRA-friendly play in the weakened EWZ. I naturally could have gone short put (the June 19th 19 shortie is paying .63), but wanted the opportunity to make...
Taking a stab here, Brazil in not so good shape fundamentally, and all this FOMO is almost certain to pass.
EARNINGS: ... with June monthly at-the-money short straddle price as a function of stock price shown: HPQ (38/62), 14.3%: Announces Wednesday before market open. CRM (54/46), 8.7%: Announces Thursday before market open. COST (35/32), 6.5%: Announces Thursday before market open. Notes: Ordinarily, I screen potential earnings announcement volatility contraction...
Ever seen a "Brazilian Zebra"? Pictured here is an ITUB (35/76) Zero Extrinsic Back Ratio Spread (hence the colorful acronym, "ZEBRA") in the Brazilian financial, ITUB. Since Zebras are high delta directional plays, they're seen as synthetic stock substitutes and can be deployed both on the call side (long), as well as on the put side (short), with the general...
... for a 1.44 credit. It's not much of a ladder with only two rungs, but there's no July currently (there will be one after May opex, after which I'll consider adding a third rung). An acquisitional play in high rank/implied (53/66) to potentially grab this divvy yielder (5.15%) at a discount.
EARNINGS: There are a ton of earnings coming out next week, with the most options liquid plays to be had in AMD (44/71), TWTR (77/80), and FB (59/50). Pictured here is a delta neutral short strangle in AMD in the June cycle (54 days). Camped out around the 20 delta strikes, it paid 3.12 as of Friday close (5.6% as a function of share price) with break evens at...
Dear Investor, After falling about 60% from this year's High, the EWZ has started a correction movement in "W" shape. If the price goes above $26,50, I believe the share will return to trade between $30 and $35 and it'll close the first GAP opened by the coronavirus crisis. I started my LONG position in this share since $20,00. But, if you want to get in this...
Emerging markets are at 2008 levels, as IMF says this is going to be WORSE than 2008. The rest of the world still needs to catch up, SPX is at Dec 2018 level and this virus is way worse than a double rate increase. Ask yourself, are you better or worse off than Dec 2018?
OPTIONS LIQUID EARNINGS ANNOUNCEMENTS: MU (77/112) NKE (74/103) EXCHANGE-TRADED FUNDS ORDERED BY IMPLIED VOLATILITY RANK: EWZ (91/132) USO (89/210) XLU (84/76) GDXJ (82/141) XLE (77/109) EWW (76/105) SMH (73/105) TLT (71/47) XOP (63/154) SLV (73/79) GLD (63/37) FXI (61/63) GDX (57/106) BROAD MARKET ORDERED BY IMPLIED VOLATILITY RANK: IWM (76/71) EEM...
Olá Investidor, Hoje estamos há praticamente 1 mês sobre a pressão da volatilidade gerada pelo coronavírus. Em análise comparativa, temos que o EWZ tem se mostrado mais volátil que o SPX , que já está nas suas máximas. Estamos sentido essa volatilidade no dia-a-dia no IBOV , que tem apresentado movimentos absurdamente desproporcionais. A bolsa brasileira...
PBR caiu demais! Excelente oportunidade de compra! A NYSE:PBR caiu demais na crise do Coronavirus e da guerra comercial do Petroleo. O papel caiu mais que as demais empresas do setor, mais que o proprio petroleo e mais que o AMEX:EWZ , indice que ela compoe e tem grande representacao. Estou efetuando compras no papel desde $11.00. E como meu unico receio esta...
EARNINGS: ADBE (89/65) and ORCL (77/60) both announce earnings on Thursday after market close and have the metrics I look for in earnings-related volatility contraction plays (>70% rank; >50% 30-day implied). Pictured here: a short strangle paying 11.65 at the mid price camped out around the 16 delta. Its defined risk counterpart: the 265/275/395/405 ten-wide...
... for a 1.26 credit. Metrics: Max Profit: $126 Max Loss/Buying Power Effect: Undefined/$440 Credit Received/Buying Power Effect Ratio: 28.6% Delta/Theta: -1.53/1.32 Notes: Selling a directionally neutral short strangle in the first expiry in which the at-the-money short straddle pays greater than 10% of the stock price with the intention to delta under hedge...
EARNINGS: ROKU (64/83) announces earnings on the 13th (Thursday) after market close and looks to be the best play out of earnings announcements occurring next week from a volatility contraction standpoint. Pictured here is a fairly straightforward short strangle camped out around the 17 delta in the March cycle, paying 5.62 on buying power effect of around 12.50...
... for a 1.46 credit. Notes: Going out to the first expiry in which the at-the-money short straddle pays greater than 10% of the stock price and selling the 16's with the intent to potentially do additive delta adjustments over time. From a portfolio-wide perspective, I have a good sprinkling of longer-dated core exchange-traded fund positions to start out the...
EARNINGS: Earnings kick off in earnest this week with a bevy of financials (WFC, GS, JPM, C, BAC, MS). Generally speaking, I haven't played these in the past due to low background implied, and nothing has changed in that regard this go-around from a premium selling standpoint: WFC (30/21), GS (27/24), JPM (20/21), C (16/23), BAC (0/22), MS (0/24). That...
AMEX:EWZ Bullish set up and resistance breakout on the ETF representing the Brazilian market. As always the ascending triangles are among our most common traded patterns because they have a profit realization degree of 50% with an average Profit/Loss Ratio of 3:1. finance.yahoo.com
EARNINGS: You can literally count the number of announcements next week on one had, and they aren't in options liquid underlyings. EXCHANGE-TRADED FUNDS: GLD (36/12) SLV (30/19) GDX (30/25) TLT (29/11) GDXJ (28/29) EWZ (25/26) First Expiry in Which At-The-Money Short Straddle Pays Greater than 10% of Share Price: GLD: January '21 SLV: July GDX: March TLT:...